Panama Canal Drought Forces Cuts to Shipping Traffic
The Facts
The Panama Canal Authority (ACP) has announced that it has been forced to cut the daily number of ships passing through the Panama Canal yet again, as the drought-stricken region suffers under the impacts of El Niño.
Beginning Friday, the daily ship quota will be reduced to 25 before being narrowed further to 18 on Feb. 1. The ACP has implemented several restrictions this year, with the most recent one — cutting the number from 32 to 31 — having taken effect on Wednesday.
The Spin
Narrative A
Shipping is the industry most vulnerable to the impacts of climate change. Roughly 90% of global goods reach their destination via maritime shipping. The demand for goods is growing and the need for shipping vessels will grow. Any impacts to shipping lanes and ports could come with a costly price tag of up to $10B per year through 2050 and then grow to $25B annually through 2100. The maritime industry will need to dig deep to ensure it becomes sustainable.
Narrative B
Maritime transport is the most critical component of international trade. Just as the industry gets back on its feet following the pandemic and Russia’s war against Ukraine, it cannot afford to suffer another setback. Regulators are so over-focused on green-washing the shipping industry that they are missing the bigger picture, overlooking the cost to companies already navigating the fallout of recent upheaval. Without properly recognizing its significance, the industry that sustains the lives of so many will inevitably face collapse.